Staples Falls Profit Forecast Trails Estimates

May 20 (Bloomberg) -- Staples Inc. fell the most in more
than two months after forecasting second-quarter profit that was
less than analysts estimated.

The shares dropped 13 percent to $11.71 at the close in New
York for the biggest one-day decline since March 6. Framingham,
Massachusetts-based Staples has fallen 26 percent this year.

Profit per share in the quarter through July will be 9
cents to 14 cents, the company said today in a statement. The
average of 16 analysts’ estimates compiled by Bloomberg was 15
cents.

Staples is shutting 225 stores to trim costs amid rising
competition from Amazon.com Inc. and sluggish demand for office
supplies. The company also has been facing a larger non-Internet
rival since Office Depot Inc. bought OfficeMax Inc. in November.